8 Money Lessons for Millennials

Are you someone who is earning enough but still has a hand-to-mouth situation, or do you often question yourself, “Where is all my money gone?” or a month-end cash crunch is your routine? If so, it’s high time to manage your money! But how can you do that? Well, here are 8 money lessons for millennials that will not only help in better money management but also make you financially stronger in future.

  1. Save first, spend later: Our parents or elders often make the statement that we should keep a certain percentage of our income in a savings account and manage the rest. This is the gist of a financially secured future. Savings have no limit, but up to 25% of your total income is a decent sum that can keep you monetarily sound. 
    If not, this much you can surely start with a small part and gradually increase. A recurring account with automated deduction can surely be the best first kick.
  2. Investment is a must: Investment comes with a risk because then you put your money in the market and its fluctuations will affect your gain. But, not investing isn’t right. There are many least risk policies as well. The investment brings you more gain with the inflated value of your money. Putting some money regularly in a PPF account can be the safest first move towards the investment.
  3. Diverse savings and investments: Putting all your money in one place is not a wise decision. Understand this situation if someone kept all his money and jewels in one place and unfortunately a theft happened to leave nothing behind. 
    It looks easy but has two drawbacks; one is that you gain uniformly without any raise based on a market hike and the worst if a loss happens all your money will be gone. Investment in a SIP policy with the right portfolio can be a good help.
  4. Make a budget and stick to it: People struggling with money mostly make budgets but fail to follow them, resulting in a monetarily disturbed month. Having big aims can be tough to reach, a weekly plan or even setting a daily expense limit will help in better budget management.
  5. Spend the least on luxuries: Spend more on experience and less on luxuries, a popular saying that suits the millennials. Buying a big car, a nice house, an iPhone and so many things exist on our bucket list even before we start earning. But these all are additional expenses for you. Instead of these; travelling, reading, watching a nice movie, starting a good hobby, etc. will enrich you better. For example, travel but ditch your car, either go for a pool or choose some public conveyance.
  6. Compound your investments: Just investing will not do, rolling over the earnings on investment is very important. Suppose you have a recurring account for the next 5 years and earn the interest every month. Re-invest this interest further in an RD; will bring in bundles for you.
  7. Spend in cash instead of credit: Credit cards are good to safeguard you from uncertainties or unexpected expenses but using them in routine is a termite for your financial wellbeing. All the regular expenses must depend only on the cash you have, and before indulging in a cash outflow think about its repayment.
  8. Create a second income: The popular quote of Warren Buffett- “If you only have one source of income-you are one step away from poverty” makes sense. You need to create a second income, and earnings on investments can be a good source of second income, but you need to invest at first. Having a side hustle, a weekend job based on your skills, and a few hours spent putting money on shares can work wonders for you.

Money management is an art, this makes you wealthy, but when you have a lot to spend, it becomes the toughest. Still, with better spending behaviour you can make sure that you never run out of money, and FlexSalary can help you in this. FlexSalary extends a credit line to salaried professionals that can be your backup in any cash crunch.

This is a ready credit facility that you can access anytime. Only on the used funds, interest is charged. Using the credit line, you can stick with your savings and investment plans because if any additional expenses come up, you can use the credit line to meet them. Half the year is gone, it’s time you take a step ahead and start better financial planning.